IRS Issues New Regulations Affecting Business

Updated: Nov 11

In September, 2013, IRS issued new regulations that will affect most of our clients operating businesses - Corporations and Partnerships as well as those individuals who operate small businesses (sole proprietorships). This will even affect those of you who operate rental properties.

The new regulations contain rules explaining whether a business can expense certain purchases immediately or whether the purchase must be expensed over time (depreciated). The new rules are effective on January 1, 2014. In order for us to continue to expense certain purchases of $500 or less, each business (including rental operations) must have a written policy in place that allows for that. The policy must be in place by January 1, 2014.

We have created a policy that can be used by all of our business clients; it can be found here. We need you to complete the form by inserting your company/business name in the first three spaces. Please sign, indicating your title, and date the policy, returning it to us no later than January 15, 2014 so that we have it in place for all of 2014. You should keep a copy of the policy for your records. If you do not sign the policy, beginning in 2014, we will only be able to expense certain purchases costing $200 or less. Certain items costing more than $200 will only be able to be expensed over time.

This change will not affect your 2013 income tax returns.

If you would like to read more details about the new regulations, there is an article published in the Journal of Accountancy here.

If you have any questions, please contact us at


5400 West Elm Street

Suite 203

McHenry, IL 60050

(815) 344-1300

(815) 344-1320 Fax


760 West Main Street

Suite 100

Barrington, IL 60010

(847) 382-3366

(847) 382-0608 Fax


Monday - Friday

8:00 AM - 4:30 PM


Monday - Friday

8:00 AM - 4:30 PM


6071 Washington Street

Unit B

Gurnee, IL 60031

(847) 336-6455

(847) 336-9594 Fax


Monday - Friday

8:00 AM - 4:30 PM

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